Incyte Earnings: Strong Opzelura Sales; Focus on Expanding Portfolio Amid Jakafi Patent Expiration

Incyte reported 2024 revenue of $4.2 billion, representing growth of 15% year over year. Despite the healthy growth, Incyte provided guidance for leading drugs, Jakafi and Opzelura, that were below expectations. Management expects sales of the hematology drug Jakafi to be between $2.925 billion and $2.975 billion for 2025, and sales guidance for the dermatology drug Opzelura is between $630 million and $670 million. We are lowering our fair value estimate to $71 per share from $88 due to a softer near-term outlook and the impact of Jakafi’s 2028 patent loss on Incyte’s portfolio during our 10-year forecast period.